Reuters reports that two sources claiming knowledge of the bid have stated that Yahoo has submitted a formal proposal to buy Hulu. Hulu is one of the most popular streaming video destinations online and competes with YouTube and Netflix.

Other companies that are reportedly included in the bidding process to purchase Hulu include Time Warner Cable and DirecTV. Some sources believe that Hulu could be worth as much as $2 billion. While Reuters reports no indication of exactly how much Yahoo bid, AllThingsD cites sources claiming Yahoo's bid was in the $600 million to $800 million range.

AllThingsD also reports that Yahoo is contemplating two other major purchases that would cost in the area of $150 million to $200 million with the money going to a mobile company and a communications company.